How savings, investments and property affect your benefits
When we calculate how much Housing Benefit and/or Council Tax Reduction you are entitled to, we include any savings, investments or property you and/or your partner have. We call all of these things 'capital'.
To claim Housing Benefit, you cannot have capital worth more than £16,000, unless you receive Guarantee Credit.
To claim Council Tax Reduction, you cannot have capital worth more than £6,000 if you are of working age. If you are of pension age, you cannot have capital higher than £16,000 unless you receive Guarantee Credit.
Examples of capital
Capital includes the following, though it is not an exhaustive list:
- Cash savings
- Savings in banks, building societies or the Post Office
- Money in current accounts
- Individual Savings Accounts (ISAs)
- Tax Exempt Special Savings Accounts (TESSAs)
- Tessa only ISAs (TOISAs)
- Premium bonds and income bonds
- National Savings Certificates
- Stocks, shares, unit trust holdings, Government securities and bonds
- Lump sums such as redundancy payments, insurance payments and back payments of Social Security benefits
- Tax refunds
- Money invested in a business and business assets
- Property, such as a house you own but don't live in
- Land you own
- Money held in trust
- Money you have borrowed
Evidence of capital
If you are applying for a new Housing Benefit and/or Council Tax Reduction claim then we may ask you to provide evidence of the capital you have.
You will be sent an automated email when you submit your claim form which will tell you exactly what you need to provide.
Has your capital changed?
You must tell us immediately if your capital changes in any way so your claim can be recalculated.
If your capital changes and exceeds the limits detailed above, you will no longer be entitled to Housing Benefit or Council Tax Reduction.
Regular checks are carried out on capital and if you have failed to advise us of any change, you will be overpaid and will be expected to pay it back.
Even if you are unsure whether you need to tell us, tell us anyway.
Report a change in your circumstances
What capital is included on your claim?
You can check what capital we are basing your claim on, for each household member, by registering to view your account online.
You can also check other information to ensure that your claim is always correct.